Oil hits 2024 high-mark as tankers avoid Red Sea after air strikes; Brent settles at $78/bbl
₹6,045 per bbl, having swung between ₹6,007 and ₹6,236 per bbl during the session, against a previous close of ₹6,033 per barrel. -While the diversions by oil tankers were expected to push up the cost and time it take to transport oil, supplies have not yet been impacted, analysts and industry experts noted, easing some of the earlier gains in prices. Analysts said that if the conflict were to spread to the other side of the Arabian peninsula, oil markets may react much more significantly.
-Tanker companies Stena Bulk, Hafnia and Torm all said they had decided to halt all ships heading towards the Red Sea. However, Suez Canal Authority head Osama Rabie said traffic is regular in both directions and there is no truth to reports navigation has been suspended due to developments in the Red Sea. -The US and UK airstrikes come in retaliation for Houthi attacks since October on commercial vessels in the Red Sea in a show of support for Palestinian militant group Hamas in its fight against Israel.
-The escalation has fed worries the Israel-Hamas war could widen into a broader conflict in the Middle East, disrupting oil supplies. Iran seized a tanker on Thursday carrying Iraqi crude south of the strait destined for Turkey. -The diversion of tankers around South Africa will also push up freight rates as ships take longer routes.
The Red Sea, a key route between Europe and Asia, accounts for about 15 per cent of the world's shipping traffic. -A Houthi spokesperson said the group would continue to target shipping heading toward Israel. Iran warned that the attack on Houthis will fuel instability in the region, according to Iranian state media.
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